SEC establishes revised social-disclosure parameters

Washington, D.C.—The Securities and Exchange Commission has issued a ruling requiring companies that engage in social media marketing to first inform their investors about their social strategies.
Previously, the SEC indicated that distributing communications through social media sites may violate its fair disclosure rule because investors who do not frequent social sites might not see announcements. The SEC has now said that companies may use social sites as a legitimate form of communications but first must inform investors that these sites may be potential announcement outlets.